Engineering machinery most super expected full year results to determine the basic. Machinery industry in the performance and distribution of ultra expected when the number of engineering machinery industry, of course, is also accompanied by refinancing needs, as the first half performance than expected, we generally increase the mechanical engineering industry forecast performance, increases in the range of about 20%; the heavy mechanical performance than expected, a short period of difficult to have the performance, but orders this year better than last year optimistic about continued growth, nuclear power demand; railway equipment industry in the first half of the growth of more than 50%, as expected, since the second half of the Ministry of railways may not have big price bidding, lack of catalyst.

　　Valuation is still repair, "1025" planning, regional revitalization is a catalyst. Although nearly three months of construction machinery of nearly 50% rebound, but raised the forecast performance after the current dynamic PE is still less than 15 times. We believe that the seasonal factors monthly sales decline, "Twelfth Five Year Plan" and the regional revitalization plan will support the next industry growth. It is worth noting that global demand picks up significantly predicted mechanical products, the export recovery. The listing Corporation refinancing demand concentrated release, driving factors and distribution is the theme of the stock price. In addition to the engineering machinery sector, we also recommend link performance is likely to improve Anhui Heli, CIMC, China first heavy.

　　The domestic engineering machinery sales of seasonal decline, year-on-year still grow, the regional distribution of the emergence of new features. Excavator sales area is best growth was mainly distributed in GDP Province, this year such as: Jiangsu, Shandong, Sichuan, Anhui, Henan. Loader and excavator sales area is different, clearly benefit from the great western development, sales before the five regions are: Inner Mongolia, Xinjiang, Shandong, Henan, Sichuan.

　　Foreign engineering mechanical strength steadily: Japan Korea engineering machinery sales rebounded significantly, especially export strong recovery; recovery Caterpillar dealer index to the level before the financial crisis, fully realize the positive growth.

　　Heavy machinery production and sales: heavy machinery orders fell due to a longer cycle, last orders this year 1-7 month delivery, metal smelting equipment, metal rolling equipment and metallurgical and petrochemical equipment output fell significantly. Mine hoisting equipment, declined slightly, but better than the same period last year. Casting and forging production continues to remain high in July.

　　The European machine tool orders also showed signs of recovery. In July the domestic machine tool production and export the highs, the strong growth of industry of German machine tool orders, the United States is also slightly better; Japan cutting machine tool orders to maintain steady growth, which China's demand remains strong, the European orders also rose sharply.